When tax season comes, all anyone seems to talk about is deductions. Not surprisingly, one of the most common questions about long-term care insurance premiums is “Can I deduct them?”
Nicely, the truth is that you are able to, in some cases, so find out where you sit in terms of deduction scenarios to find out what you are able to deduct from your long-term care insurance premiums.
To begin with, if you’re an individual taxpayer that doesn’t itemize, then you’re unable to claim a deduction on your long-term care insurance premiums. Nevertheless, if you do itemize deductions then you can deduct the health insurance premium but it is limited towards the lesser of the actual premium, or eligible long-term care premium.
If you’re a self-employed tax payer, which includes partnerships, members of LLC, or sole proprietors, then you’re eligible for a self-employed health insurance deduction on your IRS Form but it is restricted towards the lesser of actual premium paid but it isn’t topic towards the 7.5 percent of Adjusted Gross Revenue threshold.
If your premiums are paid for by an employer, the employer will treat the long-term care insurance premiums as accident and health plans. These premiums would then be deductible towards the employer and wouldn’t be including within the revenue from the employee.
It could get a bit complex to know what you can deduct and what you cannot deduct when tax season comes about. Consequently, it is important that you contact your tax adviser or accountant to find out precisely what you can and can’t do. You don’t wish to try and deduct something you can’t and then face an audit, and in the exact same time you don’t wish to neglect to deduct what you can, forcing you to pay much more or receive less on your income tax rebate.
In the event you do your personal taxes, then consult your insurance company to find out what you are able to deduct on the long-term care insurance premiums that you pay to them. The representatives ought to be much more than helpful in answering your questions and ensuring you do not end up audited, or not deducting what you are able to.
Summary Tax season is a stressful time for citizens and accountants alike. It is a time of attempting to figure out what to deduct, what to exclude and how to get as a lot bang for their buck as possible. As a result, individuals will try and deduct everything that they are able to, which includes long-term care insurance premiums.
Many don’t understand, nevertheless, what they are able to deduct when it comes to their long-term care insurance premiums, but if they take the time to study the tax info and determine exactly where they sit in terms of the kind of taxpayer they are, they should have the ability to figure it out. In the worst case scenario, an individual ought to just ask for assist from an accountant or insurance representative who will probably be pleased to answer any concerns.
Just before you go out and buy a policy visit www.longtermcareinsurance-guide.com, ask questions and ask for a long term care insurance quote. We represent 20 of the best LTCi providers. This offers you enormous options.